Rent the Runway Inc (RENT)vsRoss Stores Inc (ROST)
RENT
Rent the Runway Inc
$3.45
-7.01%
CONSUMER CYCLICAL · Cap: $116.52M
ROST
Ross Stores Inc
$230.37
-1.15%
CONSUMER CYCLICAL · Cap: $72.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Ross Stores Inc generates 6691% more annual revenue ($23.78B vs $350.10M). ROST leads profitability with a 9.7% profit margin vs 8.5%. RENT trades at a lower P/E of 0.5x. ROST earns a higher WallStSmart Score of 64/100 (C+).
RENT
Avoid34
out of 100
Grade: F
ROST
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for RENT.
Margin of Safety
-8.9%
Fair Value
$176.80
Current Price
$230.37
$53.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Revenue surging 29.2% year-over-year
Every $100 of equity generates 37 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Revenue surging 20.6% year-over-year
Earnings expanding 37.4% YoY
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -775.0% — below average capital efficiency
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 12.0x book value
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : RENT
The strongest argument for RENT centers on P/E Ratio, Debt/Equity, Revenue Growth. Revenue growth of 29.2% demonstrates continued momentum.
Bull Case : ROST
The strongest argument for ROST centers on Return on Equity, Altman Z-Score, Market Cap. Revenue growth of 20.6% demonstrates continued momentum.
Bear Case : RENT
The primary concerns for RENT are EPS Growth, Market Cap, Return on Equity.
Bear Case : ROST
The primary concerns for ROST are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
RENT carries more volatility with a beta of 1.24 — expect wider price swings.
RENT is growing revenue faster at 29.2% — sustainability is the question.
ROST generates stronger free cash flow (627M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ROST scores higher overall (64/100 vs 34/100) and 20.6% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Rent the Runway Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.
Ross Stores Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Ross Stores, Inc., operating under the brand name Ross Dress for Less, is an American chain of discount department stores headquartered in Dublin, California.
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